http://www.proactiveinvestors.com.au/companies/news/27180/new-guinea-energy-gets-a-shot-in-the-arm-from-strong-valuation-of-papua-new-guinea-licences-27180.html
New Guinea Energy gets a shot in the arm from strong valuation of Papua New Guinea licences
Monday, April 02, 2012 by Bevis Yeo
New Guinea Energy has received a clear boost after demonstrating the value that Mitsubishi Corporation has ascribed to two of its Papua New Guinea licences. Papua New Guinea explorer New Guinea Energy (ASX: NGE) believes the oil industry clearly recognises the value of its licences in the country’s Western Province.
Chief executive officer Grant Worner told Proactive Investors that Mitsubishi Corporation’s farm-in deal with Talisman Energy (TSX:TLM, NYSE:TLM) were a clear sign of the value of the company’s licences.
Mitsubishi had acquired 20% stakes in PPL 268 and PPL 269 for US$5.18 million (A$4.98 million) and US$25.7 million respectively as part of a wider farm-in to 9 licences that Talisman held stakes in.
This values New Guinea Energy’s 50% stake in the two licences at US$12.95 million and US$64.25 million, or a total of A$74.24 million (about A$0.09 per share)
This is well above the company’s current market capitalisation of about A$48.45 million at its current share price of A$0.057.
The valuations are also expected to be a boon for New Guinea Energy when it moves to secure the funding it may need to meet its drill obligations next year.
“The valuations help for us to demonstrate that this is really the value of the licences even if our market cap isn’t representing that. It helps our ability to raise funds,” Worner said.
He added that it would also be helpful if the company decided to search for a farm-in partner to help pay for its share of costs.
Drilling success will add further to the value of the two licences.
Liquefied Natural Gas
Worner also said that “having Talisman and Mitsubishi ready to invest in licences that we are involved in is a great show of confidence”.
“And it is great having two very big companies very willing to progress the LNG project.”
Mitsubishi’s farm-in to Talisman’s stakes was made a view towards developing a 3 million tonne per annum LNG gas project.
This project will aggregate and monetise gas and condensate liquids in the Western Province, which could provide a commercialisation path for other explorers in the province.
PPL 268 is believed to hold about 2 trillion cubic feet of gas while PPL 269 holds about 7 trillion cubic feet.
All of New Guinea Energy’s licences are located within an onshore basin that is a proven petroleum play hosting a similar petroleum system to the prolific offshore North West Shelf of Australia, and is one of the last available locations for highly prospective oil and gas exploration in South East Asia.
New Guinea Energy will be presenting at the upcoming One2One Forum in Sydney on 2 May. http://www.proactiveinvestors.com.au/register/event_details/42
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
$1.21 |
Change
0.000(0.00%) |
Mkt cap ! $41.50M | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1600 | $1.21 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.23 | 50000 | 1 |
View Market Depth
| Last trade - 16.21pm 10/09/2025 (20 minute delay) ? |
| NGE (ASX) Chart |
Day chart unavailable